State of intellectual property protection and enforcement in Armenia 2020 Supported by Implemented by Table of contents Foreword ............................................................................................................................................... 4 Acknowledgements ............................................................................................................................... 5 About Editors ......................................................................................................................................... 6 Acronyms and Abbreviations ................................................................................................................ 7 Introduction............................................................................................................................................ 9 Executive summary ............................................................................................................................... 11 Chapter 1 Contribution of IP system and IP protection to economic growth and development .......................................................................................................................................... 13 1.1. Importance of efficient IP system for economic growth and development ............. 13 1.2. Importance of IP protection for national economies ............................................... 15 Chapter 2. Current state of the IP system in Armenia ................................................................... 19 2.1 Legislative framework ............................................................................................. 21 2.1.1 Procedures for securing IP rights ........................................................................... 21 (a) Trademark-related statistics ........................................................................... 21 (b) Trademark national registration process ........................................................ 23 (c) Trademark official fees ................................................................................... 23 (d) Trademark appeal process ............................................................................. 24 (e) Patents and copyright ..................................................................................... 25 2.1.2 Enforcement and adjudication ................................................................................ 27 (a) Customs enforcement .................................................................................... 28 (b) Procedure for recording a trademark with the customs service ..................... 29 (c) Procedure for seizure and detention of imported goods by the customs office ................................................................................................. 29 (d) Civil disputes ................................................................................................... 30 (e) Criminal enforcement ..................................................................................... 31 Chapter 3 Gaps and recommendations ......................................................................................... 32 3.1. Copyright policy, legislative and enforcement gaps and recommendations .......... 32 3.1.1. Analysis of gaps and causes .................................................................................. 32 3.1.2. Recommendations for rightsholders ...................................................................... 33 Page 2 of 71 3.1.3. Recommendations for the government .................................................................. 34 3.2. Trademark policy, legislative and enforcement gaps and recommendations ........ 35 3.2.1. Analysis of gaps and causes .................................................................................. 35 (A) Transportation of counterfeit trademark goods from EAEU countries to Armenia .......................................................................................................... 35 (B) Legislative gaps and barriers for recording trademarks with the customs service ............................................................................................................ 37 (C) Legislative gaps and barriers for enforcement of IP rights after detention of illegally imported goods .................................................................................. 39 (D) Misuse of small parcels for illegal import of goods ......................................... 44 (E) Legislative gaps and other barriers for collection of evidence ....................... 45 (F) Legislative gaps and barriers for destruction of counterfeit goods ................. 46 (G) Bad faith registrations of foreign trademarks and geographical indications in Armenia ....................................................................................................... 48 (H) Other illegal uses of foreign trademarks in Armenia ...................................... 48 (I) Trademark non-use cancellation actions may not be enforceable in Armenia .......................................................................................................... 49 (J) Cybersquatting is a big challenge for trademark owners in Armenia ............. 49 3.2.2. Recommendations for rightsholders ...................................................................... 50 3.2.3. Recommendations for the government .................................................................. 51 3.3. Additional recommendations for the government .................................................. 53 Conclusions ......................................................................................................................................... 55 Government Commentary .................................................................................................................. 56 Annex 1 List of domestic law and international treaties signed by Armenia ................................... 58 Annex 2 Trademark-related official fees ......................................................................................... 60 Annex 3 Survey highlights .............................................................................................................. 61 Annex 4 Respondents of the survey ............................................................................................... 62 Annex 5 Non-governmental organisations promoting IP awareness and education in Armenia ......................................................................................................................... 63 Annex 6 Total number of trademark applications filed in Armenia by local and foreign companies (including UK) with the list of Nice Classes covered by those trademarks ...................... 64 Annex 7 List of sources ................................................................................................................... 68 Page 3 of 71 Foreword With funding from the UK Government’s Department for International Trade and support from the British Embassy Yerevan, in January 2020, the Intellectual Property Rights Centre of Armenia (IPRC) initiated a special research project to assess the level of protection and enforcement of intellectual property rights (IPR) in Armenia, resulting in this report. The report describes the current state of the intellectual property (IP) system in Armenia and details recommendations for the Armenian government to improve the system and for IPR rightsholders, particularly those from the UK, to navigate the system successfully. For the purposes of this research, several surveys with representatives of both the public and private sectors were conducted, including the Armenian government; NGOs; UK brand owners and their Armenian local legal counsels; importers, distributors, and various other representatives of UK businesses in Armenia; and foreign chambers of commerce. In addition, the report relies on a multitude of sources, including the Armenian IP Agency (AIPA) released information and DataLex, the litigation database for Armenia. Although the selected sources are considered to be reliable, there is always a risk that the information from those sources may contain some inaccuracies or be outdated. The editors of the report apologise in advance for such inaccuracies, if any. The editors further request that any inaccuracy that is identified in the report be communicated to the editors via info@ipr- center.org electronic mail address. The report may be cited as: IPRC/BEY (2020), State of Intellectual Property Protection and Enforcement in Armenia. Page 4 of 71 Acknowledgements The editors would like to express their deepest gratitude to all the experts who contributed to the report and research with their meticulous and constructive review and valuable perspective on the drafts, which tremendously improved the quality of the report. The report was especially enriched by the invaluable input, comments and strategic directions from Susanna Nersisyan, General Director of Armauthor, Authors’ Rights Society, and Susanna Knyazyan, the Executive Director of IPRC. The editors would like to further thank all team members of IPRC and Knyazyan & Partners for their support, as well as Mariam Hayrapetyan, LL.M student of the American University of Armenia, who has successfully completed her master’s program as an intern for this project. The team and Mariam Hayrapetyan assisted with number of tasks, including research, preparation